Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
After a three month strategic review of its Australian operations which had been widely expected to result in the sale by Telecom New Zealand of its Australian subsidiary, AAPT, Telecom NZ says it has decided to retain and continue to invest in the business.
Announcing the decision at the company's Q3 results briefing in Sydney, CFO Marko Bogoievski said a number of proposals had been received but non met Telecom's requirements from either a value of strategic perspective. These ranged from outright sale to a combination of customer bases with other players.
However he said the review had highlighted the fact that consolidation in the Australian market was both desirable and inevitable in the long term, and had help the company identify ways in which it could better direct its $70-$80 million annual spend on carrier services.
He added that the high degree of regulatory uncertainty in the Australian market had made it difficult to conclude satisfactory arrangements.
In February Telecom NZ announced the immediate departure of John Stretch, the CEO of its main Australian business unit, AAPT and a 'change to the structure' of its Australian operations that saw Bogoievski lead a new Mass Market business and Telecom NZ's chief IT services officer, Mark Ratcliffe put in charge of a managed customer business.
This has since been followed by a major restructure of the company's New Zealand operations that saw Simon Moutter named COO Business with responsibility for all of Telecom's managed customer business, including Gen-i and Telecom Business Solution.
Bogoievski said that Ratcliffe would continue to oversight the Australian business serving the large corporate market in line with the company's policy of a more closely integrated trans-Tasman operation, but a new CEO for its mass market business would be appointed.
AAPT is mid way through an $A80 million BSS/OSS upgrade centred around BearingPoint's Infonova BSS/OSS. Bogoievski said it had delivered a major benefit with the completion of E-bill which enables seamless billing of on-sold Telstra services. He predicted that this would significantly reduce churn in the consumer market.
David Bass
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